Note

Goodwill and

Long-Lived

Assets

During the

three

months ended

March 31, 2019,

the largest customer of our Cold Chain Packaging reporting segment provided

-day notice that they are terminating their purchase contract with us. As a result, we performed an impairment analysis on the segment, which accounts for the expected loss of the customer. We determined that the long-lived assets and goodwill associated with our Cold Chain Packaging reporting segment were impaired and we recognized a non-cash impairment charge of

$47

on goodwill,

$737

on long-lived intangible assets, and

$229

on property plant and equipment, which is recorded in impairment loss on goodwill and long-lived assets on the accompanying Consolidated Statements of Operations.

During the

three

months ended

December 31, 2018,

we performed an impairment analysis on our Cold Chain Packaging reporting segment as the segment’s financial results continued to fall short of expectations. Specifically, rising commodity costs used in the segment’s principal product have increased over the past year, eroding the gross profit margin of the segment. We determined that the long-lived assets and goodwill associated with our Cold Chain Packaging reporting segment were impaired and we recognized non-cash impairment charge of

$1,028

on goodwill and

$2,641

on long-lived assets, in impairment loss on goodwill and long-lived assets on the accompanying Consolidated Statements of Operations.

During the year ended

March 31, 2018,

revenues in our Cold Chain Packaging reporting segment decreased significantly as compared to the prior year primarily due to a significant decrease in revenues from our largest customer. As a result of this and other related events, we reviewed the long-lived assets associated with this reporting segment and recorded a

$13,819

impairment charge during the year ended

March 31, 2018.

After the charges recorded, the remaining value of intangible assets and property, plant and equipment associated with the Cold Chain Packaging reporting segment are

$54

and

$17,

respectively as of

March 31, 2019.

The fair value of the impaired assets was determined using Level

inputs (unobservable inputs) based on a discounted cash flow method.

Within the next

months, we intend to exit the Cold Chain Packaging business. We intend to cease accepting new customers, and to gradually curtail sales and expenses related to existing customers. The Cold Chain Packaging division had sales of

$6,907

during the year ended

March 31, 2019.

We are targeting to exit by or before

March 31, 2020.

The change in the carrying amount of goodwill was as follows:

	Sterilization and Disinfection Control			Instruments		Cold Chain Monitoring		Cold Chain Packaging			Total
March 31, 2017	$	24,019		$	18,235	$	15,404	$	14,498		$	72,156
Effect of foreign currency translation		536			--		--		722			1,258
Acquisitions		5,948			--		--		--			5,948
Impairment		--			--		--		(13,819	)		(13,819	)
March 31, 2018		30,503			18,235		15,404		1,401			65,543
Effect of foreign currency translation		(723	)		--		--		(67	)		(790	)
Acquisitions		--			--		2,699		--			2,699
Impairment		--			--		--		(1,075	)		(1,075	)
March 31, 2019	$	29,780		$	18,235	$	18,103	$	259		$	66,377

Other intangible assets are as follows:

	March 31, 2019
	Carrying Amount		Accumulated Amortization			Net		Useful Life (Years)
Intellectual property	$	7,690	$	(5,301	)	$	2,389	10	-	16
Trade names		3,739		(2,542	)		1,197	3	-	10
Customer relationships		61,198		(31,584	)		29,614	7	-	10
Non-compete agreements		1,581		(1,562	)		19	3	-	10
Total	$	74,208	$	(40,989	)	$	33,219

	March 31, 2018
	Carrying Amount		Accumulated Amortization			Net		Useful Life (Years)
Intellectual property	$	7,210	$	(4,554	)	$	2,656	10	-	16
Trade names		3,675		(2,154	)		1,521	3	-	10
Customer relationships		64,363		(26,128	)		38,235	7	-	10
Non-compete agreements		1,865		(1,427	)		438	3	-	10
Total	$	77,113	$	(34,263	)	$	42,850

The following is estimated amortization expense for the years ending

March 31:

2020	$	6,500
2021		5,455
2022		5,090
2023		4,862
2024		4,346

Amortization expense for the years ended

March 31, 2019,

2018

and

2017

was

$7,090,

$6,929,

and

$6,450,

respectively.